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Has Pioneer Natural Resources Stock Started a New Uptrend?

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Pioneer Natural Resources’ performance

For the week ending September 22, 2017, Pioneer Natural Resources (PXD) stock price rose more than 5% from $136.93 to $144.01. Last week, PXD’s stock price rose on all five days of the week. The strong gain in PXD can be attributed to the strong rising trend in crude oil prices. The key highlights of the week included PXD’s stock price crossing above its 50-day moving average, which currently stands at $140.57. However, PXD’s 50-day moving average is trending down and stands below its 200-day moving average, a negative technical indication. Currently, PXD’s 200-day moving average stands at $168.52, and PXD’s stock price is trading ~13% below it.

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Crude oil gained but natural gas lagged

For the week ending September 22, 2017, crude oil (USO) prices rose from $49.89 per barrel to $50.66 per barrel, an increase of ~1.5%. On September 14, 2017, crude oil prices rose above their 200-day moving average and saw a higher high on daily price metrics. Capitalizing on this positive technical position, on Tuesday, crude oil prices found support at their 200-day moving average and rallied further. Currently, crude oil’s 200-day and 50-day moving averages stand at $49.63 and $48.32, respectively. Natural gas (UNG) prices were flattish last week. Natural gas prices fell slightly from $3.024 per MMBtu (million British thermal units) to $3.021 per MMBtu.

Peers

Pioneer Natural Resources primarily operates in the Permian Basin. Peers EOG Resources (EOG), Occidental Petroleum (OXY), and Diamondback Energy (FANG), which also operate in the Permian Basin, were up ~1%, ~3%, and ~2%, respectively, last week. As of September 22, 2017, Pioneer Natural Resources has a market capitalization of ~$25 billion. In comparison, EOG, OXY, and FANG have market capitalizations of ~$56 billion, ~$49 billion, and ~$9 billion, respectively.

The SPDR S&P Oil and Gas Exploration & Production ETF (XOP) has hugely outperformed the SPDR S&P 500 ETF (SPY). XOP rose 3.8%, whereas SPY rose 0.10% last week. However, PXD has even outperformed XOP by a relatively high margin.

In the next part, we’ll look at PXD’s correlation coefficient with crude oil prices.

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